Q3-2024 Senior Living Market Survey Analysis: Senior Living Concessions

In Quarter-3 of 2024, BILD conducted over 280+ individual Market Surveys on senior living communities across the nation. Below is the executive summary and the data trends that were uncovered regarding concessions, community fees, and rate increases within those senior living communities shopped.

Target Regions: U.S Market Areas (percent of shops) – East Central (27%), West Central (23%), Pacific (20%), Atlantic (17%), Mountain (7%), New England (6%)

Target States: AL, CA, FL, IL, IN, KY, MA, MD, MI, MO, NV, OH, TN, VA

Time Periods Data Analyzed: 7/1/2024 – 9/30/2024

The most common discounts communities were offering:

• No specials offered Q1(63%), Q2(57%), Q3(51%).

• Reduce/discount rent Q1(11%), Q2(15%), Q3(22%).

• Waive/reduce community fee Q1(9%), Q2(11%), Q3(10%).

• Others: veterans, moving costs Q1(8%), Q2(5%), Q3(5%).

*Data excludes any CCRC entrance fees

The 2023 average community fee ($2,899) is higher than the 2022 average of $2,551. While Q1-2024, the average community fee was $4,152, the Q2-2024 average was $3,582 and increased to $3,840 in Q3-2024.

In 2022 the average rate increase was 3.93% and in 2023 there was a slightly higher average rate increase of 4.02%. In Q1-2024, rates increased to an average of 4.21%, Q2-2024 average was 4.6% and increased to 5.01% in Q3-2024.

Overall Concession Trends

• 10% of communities offered to waive or reduce the community fee, most commonly 50-75% off the community fee. 51% of communities offered no specials, most commonly due to high or full occupancy.

• Reducing rent would typically last 3-6 months but a few reduced rent up to 12-24 months. Most commonly up to 3 months of rent would be reduced. Rent reductions went as high as $3,500 which averaged 20% discounted per month.

• Other concessions: veterans discounts (avg. 20%), move in fees discounted ($500-$1,500), second person fees discounted (avg. $850- $1,500 off for 1-3 months).

Overall Community Fee Trends

• The most common community fee in Q3-2024 ranges between $2,575 and $3,900.

• The highest community fee analyzed was $12,000 (not CCRC) while the lowest community fee (excluding $0) was $500.

• The overall median community fee price was $3,000.

Overall Rate Increases Trends

• The most common rate increases range between 5-5.9%.

• The highest rate increase seen was 10%. Other than a 0% rate increase, the next lowest increase was 1%.

• The overall median rate increase was 5% and the average was 5.01%. This reflects a 1.01% increase compared to 2023 and a 0.4% increase since Q2-2024.